Baremetrics

OCTOBER 8, 2021

One of the most important metrics is customer lifetime value ( LTV ). While it might sound like a simple concept, calculating the average revenue per user ( ARPU ) and the customer churn , which are necessary components of the LTV calculation, is complicated because the information is coming from many sources. What is LTV?

Payment Services 94

Payment Services Payments SaaS Payments Payment Features 94

Intercom, Inc.

SEPTEMBER 10, 2020

The framework consists of three elements: product-market fit, go-to-market fit, and growth and moat. What kind of information drives that decision: is it subjective and qualitative, or objective and quantifiable? It’s the classic conflict: left brain versus right brain; art versus science. Mark Roberge knows which he prefers.

Scale 226

Scale Scaling Sales Recruiting Sales Hiring 226

User Pilot

FEBRUARY 28, 2024

Building a customer path is a crucial step in getting a deeper understanding of user behavior. That’s because effective product engagement is only possible when you have enough context on the customer’s journey and can visualize the ways users interact with your software. Implement interactive walkthroughs to keep users on the golden path.

Customer Lifetime Value 105

Customer Lifetime Value SaaS Software Review Acquisition 105

Kellblog

NOVEMBER 23, 2022

I’ve been CEO of two startups and on the board of about ten. That means I’ve presented a lot of operating plans to boards. It also means I’ve had a lot of operating plans presented to me. Frankly, most of the time, I don’t love how they’re presented. For a primer, see here. A laundry list of goals. OKRs are great. So, present context.

Technical Review 116

Technical Review Software Review Forecasting Churn 116

User Pilot

MAY 17, 2021

Acquisition stage KPIs to track: CAC, Free Trial signups , or Demos booked. Adoption stage KPIs to track: Active User, DAU to MAU ratio , Feature Adoption Rate. Retention stage KPIs to track: Customer Churn, Revenue Churn , LTV, LTV to CAC ratio , User Retention Rate. What is Product Marketing?

Product Marketing 98

Product Marketing Metrics Customer Lifetime Value Marketing 98

User Pilot

AUGUST 15, 2021

The most important engagement metrics: CR across the journey, LTV: CAC, activation rate, feature engagement, active users, customer engagement score, NPS, CSAT, retention, customer churn. There are three different ways of measuring customer engagement: Measure customer engagement by acquisition channel. Let's get started!

Engagement 98

Engagement Metrics Scale SaaS 98

User Pilot

FEBRUARY 26, 2024

They paint a picture of your product’s impact and the success of your marketing strategy. However, not all metrics are created equal. In this article, we hone in on the best metrics for product teams looking to drive product growth. We discuss 15 of the most important metrics and examine what to consider when choosing which metrics to track.

Metrics 104

Metrics Customer Lifetime Value Scale SaaS 104

Stax

FEBRUARY 21, 2024

It’s a ratio that compares the growth in recurring revenue to the sales and marketing expenses incurred during a specific period. It’s a ratio that compares the growth in recurring revenue to the sales and marketing expenses incurred during a specific period. And it worked; the Model-T was the most-produced car in the world until 1975.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

Baremetrics

NOVEMBER 1, 2021

Vanity metric vs. actionable metric Three questions you should ask to identify a vanity metric Does this metric lead to specific decisions? Baremetrics provides an easy-to-read dashboard that gives you all the key metrics for your business, including MRR , ARR, LTV , total customers, and more directly in your Baremetrics dashboard.

Payment Services 98

Payment Services Metrics Payments SaaS Payments 98

Kellblog

JULY 25, 2020

Higher valuations primarily just shift the Y axis, as they have done here, uplifting the maximum Y-value by nearly three times since I last blogged about such a chart [9]. Higher valuations primarily just shift the Y axis, as they have done here, uplifting the maximum Y-value by nearly three times since I last blogged about such a chart [9].

Technical Review 95

Technical Review Software Review Pricing Metrics 95

User Pilot

JANUARY 31, 2023

There are three main phases you should consider: Pre-launch phase: This phase includes activities like market research, product development, product testing, etc. Do you want to track product launch success with relevant KPIs and metrics but don’t know where to start? What are the phases of a product launch?

Metrics 98

Metrics Scale Software Review Retention 98

ChurnZero

MARCH 18, 2022

Leading SaaS expert, Dave Kellogg, and ChurnZero CEO, You Mon Tsang, sat down to answer all the questions you want to know about SaaS metrics like ARR, NRR, GRR, LTV, and CAC (i.e., all the metrics your CEO and CFO care about) and set the context for their usage. Key SaaS and Customer Success metrics you should care about.

Customer Success 98

Customer Success Metrics SaaS Banking 98

FastSpring

MARCH 9, 2022

We’ll also include some bonus tips to help you with strategies beyond the page design — including packaging, optimizing pricing for LTV, and more. Because we have data from thousands of Saas and software websites. The path to a signup or purchase may include a variety of page views, but it almost always includes the pricing page.

SaaS Payments 145

SaaS Payments Pricing Payments Payment Methods 145

CustomerSuccessBox

JULY 15, 2021

ARPU is an acronym that stands for Average Revenue Per User or Average Revenue Per Unit depending on what type of business you run. For a SaaS business, it is the average revenue extracted per user and for any eCommerce or any other product business, it is the unit. That also helps in classifying high and low revenue products. Lord Kelvin.

Revenue 52

Revenue Customer Lifetime Value Acquisition Churn 52

User Pilot

AUGUST 18, 2021

Measure by acquisition channels to find the channel that leads to your most profitable users with the lowest CAC. Such customers are likely to stay around longer hence increasing their lifetime value ( LTV ) and product adoption. Why is it important to measure customer engagement in your product? User Journey in SaaS.

Engagement 98

Engagement Retention Software Review SaaS 98

Kellblog

OCTOBER 5, 2022

Worse yet, once churn rates get polluted, all downstream metrics get polluted along with them – e.g., customer lifetime (LT), lifetime value (LTV), and ergo LTV/CAC. He made a few comments and concluded with, “and net revenue retention (NRR) is thus 112%, not bad.”. I thought, “Wait, stop! It’s a cohort-based measure.

Systems Review 121

Systems Review Churn Metrics Finance 121

The Angel VC

MARCH 23, 2016

Almost exactly four years ago I published a financial plan template for SaaS startups based on a model that I had created for Zendesk a few years earlier. I received a lot of great feedback on the template and the original post remains one of the most viewed posts on this blog up to this day. If you find one, please email me at and I'll fix it ASAP.

SaaS Payments 217

SaaS Payments Headcount SaaS Payment Methods 217

User Pilot

JULY 12, 2021

How much does your business stand to gain from using customer retention analytics? While acquiring new customers is crucial, it’s important not to neglect the ones you already have. Effective retention takes more than just using your intuition to determine what will keep customers satisfied. What is customer retention analytics?

Retention 98

Retention Technical Review Software Review Churn 98

Neil Patel

OCTOBER 21, 2021

Perhaps you have a yearly marketing plan that provides an overview of the year. This can be helpful in understanding your overall goals but too vague to implement. That’s why a campaign plan with a narrower window—such as a quarter—is essential to marketing success. Review Last Quarter’s KPI and Metrics. It’s not enough to create a plan.

Advertising 132

Advertising Customer Lifetime Value Social Media Metrics 132

Kellblog

APRIL 4, 2021

Example: a founder is raising a seed round off $1M in ARR and a VC is asking a lot of questions about CAC and LTV. Manager response: “Well, I know a CAC of 1.7 is high but we are ramping quickly and carrying a lot of unproductive sales capacity that hurts the CAC ratio.” I was aghast, dumbfounded.

CTO Coach 99

CTO Coach CTO Hire Sales Hiring CTO 99

User Pilot

JUNE 11, 2021

A few of the important KPIs you can track for your SaaS business include ARPU, MRR, ARR, Expansion MRR rate, Churn MRR rate, Churn, LTV, LTV:CAC, and User Retention Rate. We’ll also tell you which data points and metrics you should pay particular attention to and how to track them using the SaaS analytics software listed here!

Software Review 52

Software Review Software Social Media SaaS 52

ProfitWell

JANUARY 16, 2020

And as we know is true for SaaS, LTV:CAC ratio is your lifeblood for sustainability and growth, so D2C products as well must not stray far. #4: We have a ton of resources on CAC, LTV, and expansion revenue for the SaaS and subscription space, which you can delve into here: The complete SaaS guide to calculating & reducing CAC.

Scale 51

Scale Subscription Payment Features Benchmarks 51

Tom Tunguz

SEPTEMBER 13, 2015

average revenue per customer at its IPO, leverages its best-in-class product advantage to sign customers to three year or longer contracts, establishing very favorable LTV/CAC ratios. Vertical SaaS requires a different go-to-market than horizontal SaaS companies. Today, Veeva’s market cap exceeds $3.3B.

Startup 103

Startup SaaS Underperforming Technical Team Marketing 103

ProfitWell

JUNE 26, 2019

The most efficient companies, when looking at lifetime value (LTV) to customer acquisition cost (CAC) ratios, are fueling that efficiency mainly off expansion revenue. Note that companies who have an LTV to CAC between three and five are seeing a median of just under 20% expansion revenue as a proportion of their total revenue.

Revenue 45

Revenue Subscription Payment Features Benchmarks 45

ProfitWell

JUNE 15, 2020

Looking to get away? Maybe start over somewhere else? I have good news. An entire Swedish spa village is on sale for $7 million. Who's with me? But, on a more a serious note—some good news in terms of DTC growth. Check out the index to see what I mean. How is DTC growth trending over time? ??7 7 day +1.14% | ??30 30 day +4.99% | ??90 90 day -0.17%.

Payment Methods 76

Payment Methods Merchant Services Payments Customer Lifetime Value 76

ChurnZero

JUNE 19, 2020

It is no secret that customer churn hits recurring revenue businesses hard, but what’s its real impact on their long-term health and valuation? To answer that and more, we invited SaaS Capital’s Managing Director, Rob Belcher, and Software Equity Group’s Managing Director, Allen Cinzori, to join us for a webinar. Q&A Recap.

SaaS Payments 72

SaaS Payments Retention Metrics Payment Solutions 72

Chart Mogul

AUGUST 15, 2019

Revenue-based financing is quickly becoming a popular way for startups to raise funds without sacrificing equity. This is how it works. This is a guest post by Brian Parks, Managing Partner at Bigfoot Capital. New investment structures are gaining traction in the early-stage SaaS financing market. A high-level look at Revenue-based financing (RBF).

Finance 85

Finance Payments Revenue Payment Solutions 85

Chart Mogul

MAY 3, 2023

Retention is arguably the most critical metric in SaaS regardless of a company’s stage. We sit down with Daniel Bakh, CEO & Co-founder at Fullview, Parker Moore, Head of Customer Success at Vitally, and Enzo Avigo, CEO & Co-founder at June to discuss recent trends in this key metric.

Retention 52

Retention Trends B2B SaaS 52

User Pilot

MARCH 29, 2023

Looking for some tactics for LTV optimization? LTV optimization is a crucial aspect of any successful business strategy. By making informed decisions with LTV optimization, you can create a cycle of customer loyalty and long-term profitability. Are you ready to take your LTV optimization to the next level?

Customer Lifetime Value 97

Customer Lifetime Value Revenue Onboarding Acquisition 97

Chart Mogul

AUGUST 15, 2019

Revenue-based financing is quickly becoming a popular way for startups to raise funds without sacrificing equity. This is how it works. This is a guest post by Brian Parks, Managing Partner at Bigfoot Capital. New investment structures are gaining traction in the early-stage SaaS financing market. A high-level look at Revenue-based financing (RBF).

Finance 52

Finance Payments Revenue Payment Solutions 52

SaaStr

OCTOBER 1, 2020

CAC ration. LTV to CAC ratio. CAC payback period. Three Fatal Flaws of Churn: Kellogg along with many other business owners have become increasingly skeptical of churn rates within the last few years. 2 Churn rates blow up LTV. Four different churn rates, mean four different LTV rates.

Churn 219

Churn Retention Acquisition Benchmarks 219

Point Nine Land

JUNE 18, 2023

Everything you always wanted to know about cohort analysis (but were afraid to ask) Back in 2012, I wrote a blog post titled “Know your user cohorts” , which began like this: “One of the most important tools to better understand the usage of a web application — or a service, a game or a mobile app, it doesn’t matter — is a cohort analysis.

SaaS Payments 128

SaaS Payments Payment Services Payments SaaS 128

OpenView Labs

JUNE 10, 2019

Find out how Brent Tworetzky, SVP of Product at InVision, defines the three major roles of product management: strategy, execution and user understanding. Special thanks to Miriam Richter, Adelina Irimia and Adina Mic for helping compile this guide. They’re responsible for building amazing, market differentiated products that users love.

Management 55

Management SaaS Scale Sales Recruiting 55

Baremetrics

OCTOBER 7, 2021

For example, if your conversion ratio is low, is that because your marketing team is bringing in poor leads, your sales team isn’t succeeding in converting high-quality leads, or your development team hasn’t put the best parts of your platform at the front for a successful free trial? Lead-to-opportunity ratio: What is your lead quality?

Payments 98

Payments Sales SaaS Payments Underperforming Technical Team 98

User Pilot

NOVEMBER 28, 2023

On your way to building a go-to-market strategy to launch a new product, you might wonder the former question a lot. And with so many indicators you could be tracking, it’s easy to feel overwhelmed. GTM metrics are pieces of data or indicators that help product marketers like you keep track of the success of their strategy. Customer churn rate.

SaaS Payments 105

SaaS Payments Metrics Customer Lifetime Value Marketing 105

Point Nine Land

JULY 12, 2021

These are just three examples. A longer CAC payback time is OK if you have strong negative churn. High CACs for paid acquisition may be OK if your blended CACs are much lower. High CACs for paid acquisition may be OK if your blended CACs are much lower. How does our conversion rate compare to other startups?

Metrics 69

Metrics SaaS Churn Acquisition 69

ProfitWell

MARCH 23, 2020

However, for any given month, there are three types of customers: Those who signed up the prior month. Churn has an impact on other SaaS metrics—MRR, customer LTV, CAC, net negative MRR churn (I’ll dive into each, momentarily). There are a few key metrics that all subscription businesses should be completely on top of.

Subscription 85

Subscription Payment Features Metrics Business 85